| FINANCIAL INSTRUMENTS |
NOTE 17 – FINANCIAL INSTRUMENTS The net carrying amount of cash and cash equivalents, restricted cash, contractual receivables, other assets and accrued expenses and other liabilities reported in the Consolidated Balance Sheets approximates fair value because of the short maturity of these instruments (Level 1). As of June 30, 2026 and December 31, 2025, the net carrying amounts and fair values of our other financial instruments were as follows: | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | | Carrying | | Fair | | Carrying | | Fair | | | Amount | | Value | | Amount | | Value | | | | (in thousands) | Assets: | | | | | | | | | | | | | Real estate loans receivable – net | | $ | 1,366,744 | | $ | 1,376,130 | | $ | 1,380,949 | | $ | 1,412,106 | Non-real estate loans receivable – net | | | 270,166 | | | 273,571 | | | 330,322 | | | 331,970 | Total | | $ | 1,636,910 | | $ | 1,649,701 | | $ | 1,711,271 | | $ | 1,744,076 | Liabilities: | | | | | | | | | | | | | Revolving Credit Facility | | $ | 6,000 | | $ | 6,000 | | $ | 242,000 | | $ | 242,000 | 2028 Term Loan | | | 298,427 | | | 300,000 | | | 298,118 | | | 300,000 | 4.50% notes due 2027 – net | | | 698,963 | | | 699,538 | | | 698,231 | | | 702,303 | 4.75% notes due 2028 – net | | | 548,445 | | | 549,791 | | | 547,941 | | | 554,307 | 3.63% notes due 2029 – net | | | 496,121 | | | 479,560 | | | 495,517 | | | 484,105 | 5.20% notes due 2030 – net | | | 591,284 | | | 602,922 | | | 590,190 | | | 610,608 | 3.38% notes due 2031 – net | | | 691,647 | | | 649,887 | | | 690,752 | | | 653,527 | 3.25% notes due 2033 – net | | | 693,721 | | | 621,971 | | | 693,262 | | | 622,272 | Total | | $ | 4,024,608 | | $ | 3,909,669 | | $ | 4,256,011 | | $ | 4,169,122 |
Fair value estimates are subjective in nature and are dependent on a number of important assumptions, including estimates of future cash flows, risks, discount rates and relevant comparable market information associated with each financial instrument (see Note 2 – Summary of Significant Accounting Policies in our Annual Report on Form 10-K for the year ended December 31, 2025). The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. The following methods and assumptions were used in estimating fair value disclosures for financial instruments: | ● | Real estate loans receivable: The fair values of the real estate loans receivable are estimated using a discounted cash flow analysis, using interest rates being offered for similar loans to borrowers with similar credit ratings (Level 3). |
| ● | Non-real estate loans receivable: Non-real estate loans receivable are primarily comprised of notes receivable. The fair values of notes receivable are estimated using a discounted cash flow analysis, using interest rates being offered for similar loans to borrowers with similar credit ratings (Level 3). |
| ● | Revolving Credit Facility and 2028 Term Loan: The carrying amounts of these approximate fair value because interest rates on these borrowings reset periodically to current market rates. Differences between carrying values and the fair values in the table above are due to the inclusion of deferred financing costs and discounts in the carrying values. |
| ● | Senior notes: The fair values of the senior unsecured notes payable are estimated using publicly available trading prices (Level 1). |
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